P2 Exam Dumps | An organization's transfer pricing system involves: * The transferring division receiving $20 per unit;

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CIMA.P2.v2022-06-15.q66
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Question 23/66

An organization's transfer pricing system involves:
* The transferring division receiving $20 per unit; an amount equal to its variable costs.
* The receiving division paying an additional $30,000 every month to the transferring division.
Which transfer pricing system is the organization using?

A. Variable cost plus opportunity cost

B. Cost-plus

C. Two part tariff

D. Dual transfer prices

Correct Answer: C

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